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Economic impacts of development of road transport for Aquitaine region for the period 2007-2013 subject to a climate plan

Listed author(s):
  • Jean-Christophe MARTIN (GREThA, CNRS, UMR 5113)
  • Patrick POINT (GREThA, CNRS, UMR 5113)

The region of Aquitaine, located in south-west of France, has implemented a climate plan for the period 2007-2013 in order to avoid 2 883 ktCO2eq per year for 2013. But this region is an important place of transit’s flow between northern Europe and southern Europe. The share of goods transport represents about 30% of road traffic of the Aquitaine region. Moreover, traffic from road transport will not be stabilized according to Becker’s report (2001). As a result, the region council of Aquitaine has planned some road projects in order to increase traffic capacities to avoid too much congestion costs. But, investments decision concerning construction of road infrastructure is performed by cost-benefit analysis. A project leading to an increase of greenhouse gas (GHG) emissions could have also a positive net social benefit. If regional council of Aquitaine wants to realize their road projects, it has to implement some GHG offsetting projects. The computation of opportunity cost of projects of road infrastructure construction must be a useful indicator to determine the maximum budget for GHG offsetting projects. This analysis, far away from substituting to cost-benefit analysis, is however complementary to it. We calculated, for Aquitaine region, the budget of opportunity cost of road projects: it was estimated by €2001 1 920 M and €2001 3 592M respectively for a moderate and high increase of traffic for 2007-2013.

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Paper provided by Groupe de Recherche en Economie Théorique et Appliquée in its series Cahiers du GREThA with number 2011-03.

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Date of creation: 2011
Handle: RePEc:grt:wpegrt:2011-03
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  1. Neumayer, Eric, 1999. "Global warming: discounting is not the issue, but substitutability is," Energy Policy, Elsevier, vol. 27(1), pages 33-43, January.
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